TO: Proximity Music Team
FROM: Travis Jones
SUBJECT: WCCO on paying for online music
DATE: February 2, 2010
We were asked to analyze a blog post or news item to help us prepare for Proximity's spring focus group. Below is my summary of WCCO's article on who is paying for online music and who is not. I recommend we include questions in the spring focus group on whether or not Towson University Students are paying for their online music.
Summary
WCCO-TV (CBS St. Paul/Minneapolis) reports on music downloading and how much of it is legal or illegal downloading. The report states that 95% of the music around the world is stolen even with the rise of iTunes as a legitimate means to pay for online music. However, the report also states that those in the United States are more likely to pay for music than elsewhere in the world. This is a result of people having a more difficult time in other countries to find legal and safe means to purchase single songs on the internet. The report suggests that the younger generation of kids age 14-16 are more likely to pay for their music downloads. The article also notes that the CD is still the primary means of purchasing music, making up 60% of music sales while legal online downloads account for 40%.
Why This Article is Important
This article makes three critical points:
The CD is still alive, accounting for a majority of legally purchased music bought. This is important because it shows there is still a market for CD's and physical copies of music, no matter how small the market is.
America buys the most music online. In 2009 almost 1.5 billion songs were downloaded legally online and generated $4.2 billion dollars for the music industry. This shows the music industry that people do actually buy music online especially in the United States
Younger teenagers buy more music online than the 18-25 demographic, who are more likely to illegally download music than teenagers age 14-16. One theory to explain this phenomenon is the younger generation were not raised in a culture of downloading music for free. This pinpoints the demographic that online music retailers such as iTunes should target for their sales.
Question to ask TU Students
How often do you pay for music downloads?
How often do you illegally download music?
What is a plausible way to get people to buy more music downloads?
What is a reasonable amount of money to pay for a single song on the internet?
Should the music industry embrace free music downloads as a means of promoting smaller, unknown bands and musicians?
TO: Proximity Music Team
FROM: Travis Jones
SUBJECT: WCCO on paying for online music
DATE: February 2, 2010
We were asked to analyze a blog post or news item to help us prepare for Proximity's spring focus group. Below is my summary of WCCO's article on who is paying for online music and who is not. I recommend we include questions in the spring focus group on whether or not Towson University Students are paying for their online music.
Summary
WCCO-TV (CBS St. Paul/Minneapolis) reports on music downloading and how much of it is legal or illegal downloading. The report states that 95% of the music around the world is stolen even with the rise of iTunes as a legitimate means to pay for online music. However, the report also states that those in the United States are more likely to pay for music than elsewhere in the world. This is a result of people having a more difficult time in other countries to find legal and safe means to purchase single songs on the internet. The report suggests that the younger generation of kids age 14-16 are more likely to pay for their music downloads. The article also notes that the CD is still the primary means of purchasing music, making up 60% of music sales while legal online downloads account for 40%.
Why This Article is Important
This article makes three critical points:
Question to ask TU Students
Reference
DeRusha J. (2010, February 1). Good Question: Who's Paying for Music Online?. WCCO. Retrieved Feb. 2, 2010, from http://wcco.com/consumer/online.music.question.2.1463479.html